How is Artificial Intelligence Transforming The eCommerce Industry

Over the years, Artificial Intelligence (AI) has helped transform the business models of many brands and enterprises. Integrating AI technology in the eCommerce industry has helped many companies to increase their market standards.

AI can enhance the eCommerce experience from end to end. The AI technology helps online retailers to identify different patterns in consumer shopping behavior. AI helps to create a more personalized shopping experience for consumers by analyzing data sets and behavioral patterns.

Online shoppers are increasingly choosing brands that connect with them and offer personalized shopping experiences. For instance, if an online shopper frequently buys a particular brand of beauty product, then the eCommerce company can send a personalized offer to the customer for the same product, or even use a machine learning algorithm to recommend additional products that go well with the beauty products.

Why Should Every eCommerce Adapt Artificial Intelligence?
The new generation of online shoppers expects brands to connect with them in real-time and provide personalized offers. They expect online retailers to know them as well as their local grocery stores. The millennial shopper doesn’t want to browse through thousands of irrelevant products. They want personalized product recommendations, quicker order fulfillment, and a seamless checkout experience.

Shoppers have multiple options available to them with just a click of a button. This means eCommerce retailers have to adopt AI to thrive in a competitive marketplace. Research suggests that, with highly personalized offers, customers are 110% more likely to add additional products to their shopping cart and 40% more likely to spend more than planned.

Benefits of Using Artificial Intelligence in Ecommerce
There are multiple benefits of AI in eCommerce, from NLP technologies in product search to machine learning algorithms for dynamic pricing, here are five benefits of AI in the eCommerce industry.

Chatbots
The digital world never shuts down. It is open 24×7 and allows customers to shop at any time of the day as per their convenience. Customers also expect dedicated service from the customer support team. AI plays an important role in delivering the attentive 24×7 service that shoppers expect.

Apart from providing better customer service, AI-embedded chatbots also have the capability to:

• Interpret voice-based interactions with customers using Natural Language Processing (NLP).
• Self-learning capabilities help them improve time.
• Provide targeted offers to customers.
• Addressing customers’ needs through deeper insights.

Intelligent Product Recommendations
Providing intelligent personalized or targeted product recommendations for online shoppers increases conversion rates and order values. E-Commerce is impacting the choice of customers, with the use of big data analytics such as previous purchases, search products, and browsing history.

Intelligent product recommendations by AI in retail have multiple benefits including:

• Improved customer retention and sales.
• Increased returning customers.
• Personalized shopping experience.

Targeted Marketing And Advertising
A personalized shopping experience for online shoppers is rated as one of the most effective modes in eCommerce. With specific data accumulated from every online shopper, AI and machine learning in eCommerce are extracting significant user insights from the customer-generated data. These insights enable retailers to create suitable product recommendations for online shoppers.

Smart Pricing
Many eCommerce retailers such as Amazon, Flipkart use dynamic pricing tools for their product sales. Dynamic pricing uses big data and machine learning algorithms to adjust product prices in real-time based on certain factors such as inventory, supply, and demand projections. This model can also help in predicting future prices of the product too.

Efficient Inventory Management
It is all about maintaining the right level of inventory to fulfill the market demand. While the traditional form of inventory management is restricted to current stock management, the AI-powered inventory management systems enable eCommerce business on how to maintain stocks based on the data such as:

• Sales history over the years
• Predicting future demands of anticipated product

How to Implement Artificial Intelligence In eCommerce
Many eCommerce businesses have already been using technologies like AI and machine learning to better understand their customers. But, how are they doing this and how to prepare your company with AI? eCommerce really needs to put some thought into what to accomplish with AI. Always plan for a practical approach, and start small.

Creating An Achievable Strategy
Always start with a strategy that will lay out the foundation you need to take from there to your AI goal. Put some thoughts into what your eCommerce would want to accomplish with AI. Always start small, and take a pragmatic approach in creating an AI strategy.

Identify the Problems to Solve with AI
Once you’re done with the strategies, the next step for eCommerce is to identify the problem that can be solved using artificial intelligence and data. Explore how your eCommerce can add AI capabilities to your existing sales of products and services. More importantly, have specific AI use cases to solve eCommerce business problems using data differentiation, to provide demonstrable value. eCommerce needs to take advantage of data and AI technologies to solve existing problems and to revenue-generating opportunities.

Leverage Third-Party Expertise
The most important part of implementing AI in eCommerce is to start small and have project goals in mind. Make sure that you understand the basics of AI and be aware of what you know and what you don’t know about AI. This is where bringing in third-party experts or AI consultants can be invaluable. They help you build a strategic AI roadmap.

Conclusion
Artificial intelligence has paved the way for eCommerce industries to maximize their growth and profits. Many small and large eCommerce businesses have transformed themselves by adopting AI. Key players like Amazon, Flipkart are thriving their business in the industry by implementing artificial intelligence and machine learning.

AI makes it possible for eCommerce businesses to analyze millions of interactions by online shoppers every day. This helps businesses understand and provide personalized or targeted offers on specific products to a single customer. Sales teams can personalize the sales cycle through AI-driven applications which helps them to engage sellers with the right prospects, at the right time.

There is no doubt that AI has secured the right place in transforming day-to-day activities. AI trends are likely to have an enormous impact on the eCommerce industry in the coming years. It will change the way consumers find products online. We hope that this guide will help you to leverage AI most efficiently in your eCommerce business.